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ad-work [718]
3 years ago
15

Edwards Company manufactures low-cost wooden chairs and uses activity-based costing. The following information is for the month

of March. Activity Estimated Indirect activity costs Allocation base Estimated quantity of allocation base Materials handling $ 3,500 Number of parts 5,000 parts Assembly 12,000 Number of parts 5,000 parts Packaging 5,750 Number of chairs 1,250 chairs Each chair consists of 4 parts and the direct materials cost per chair is $7.00. Based on the information given for Edwards Company, what is the total manufacturing cost per chair
Business
1 answer:
Airida [17]3 years ago
3 0

Answer:

$37.80

Explanation:

Particulars                                           Amount       Calculations

Direct materials                                    $7.00

Handling                                               $2.80          ($3,500/5,000*4 parts)

Assembling                                           $9.60          ($12,000/5,000*4 parts)

Packaging                                             <u>$18.40 </u>        ($5,750/1,250*4 parts)

Total manufacturing cost per chair   <u>$37.80</u>

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